Taxes on gambling winnings in sports

Super Bowl-sized betting

For fans of the Carolina Panthers and Denver Broncos, Super Bowl 50 in February 2016 was the culmination of their die-hard support. For the rest of the world, it was a chance to cash in on myriad wagers.

Each year, when the top 2 NFL teams meet for the season's final contest, around $10 billion is bet worldwide.

2016 Super Bowl bets were record-breaking

In the United States, legal sports books in Nevada account for part of that money. The Nevada Gaming Control Board reported that a record $132.5 million was bet on the 2016 Super Bowl at Nevada casinos. The previous Super Bowl high in wagers was on the 2014 NFL championship game at more than $119 million.

Legal sports betting in Nevada, however, is just a fraction of the domestic wagering picture. The Silver State's legal sports wagering represents less than 1% of all sports betting nationwide, according to the American Gaming Association.

Meanwhile, millions in illegal bets are placed with bookies or made online. In 1999, the National Gambling Impact Study Commission estimated all illegal sports wagers amounted to as much as $380 billion a year.

But all bets -- legal, illegal or even among co-workers dropping a few bucks in the office pool -- share one thing: Winning bets are taxable income.

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